The Federal BankFDBAY 73 Return-on-Tangible-Equity is 13.40% as of Mar. 2026, which is 21% above its 10-year median of 11.10. GuruFocus rates FDBAY with a GF Score™ of 73/100. The stock has 7 warning signs investors should review. Among 1,525 Banks companies, The Federal Bank ranks better than 53.31% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. The Federal Bank's annualized net income for the quarter that ended in Mar. 2026 was $577.89 Mil. The Federal Bank's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $4,314.13 Mil. Therefore, The Federal Bank's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 13.40%.
The historical rank and industry rank for The Federal Bank's Return-on-Tangible-Equity or its related term are showing as below:
FDBAY'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 8.81 Med: 11.1 Max: 15.31
Current: 11.76
During the past 13 years, The Federal Bank's highest Return-on-Tangible-Equity was 15.31%. The lowest was 8.81%. And the median was 11.10%.
FDBAY's Return-on-Tangible-Equity is ranked better than 53.31% of 1525
companies
in the Banks industry
Industry Median: 11.2
vs FDBAY: 11.76
The Federal Bank (OTCPK:FDBAY) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
The Federal Bank Return-on-Tangible-Equity Related Terms
The Federal Bank Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for The Federal Bank's Return-on-Tangible-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
The Federal Bank Return-on-Tangible-Equity Competitor Comparison
For the Banks - Regional subindustry, The Federal Bank's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
The Federal Bank Return-on-Tangible-Equity vs Banks Industry
For the Banks industry and Financial Services sector, The Federal Bank's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where The Federal Bank's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 13.40% mean?
The Federal Bank (FDBAY) has a Return-on-Tangible-Equity of 13.40% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on The Federal Bank and its competitors. This is 21% above median its historical median of 11.10. Over the past decade, The Federal Bank's Return-on-Tangible-Equity has ranged from 8.81 to 15.31. According to the industry distribution chart, The Federal Bank ranks #712 out of 1525 companies in the Banks industry, placing it in the top 46.7%.
Is The Federal Bank's Return-on-Tangible-Equity too high?
The Federal Bank's current Return-on-Tangible-Equity of 13.40% is 21% above median its 10-year median of 11.10. Over the past 10 years, this metric has ranged from a low of 8.81 to a high of 15.31. The Banks industry median Return-on-Tangible-Equity is 11.20. The Federal Bank's value of 13.40% is 19.6% above this industry median. Based on the distribution chart, The Federal Bank ranks #712 out of 1525 companies in the Banks industry, which is above the industry midpoint. Overall, The Federal Bank has a GF Score™ of 73/100, reflecting its overall financial health beyond just this single metric.
How does The Federal Bank's Return-on-Tangible-Equity compare to competitors?
According to the Banks industry distribution chart, The Federal Bank ranks #712 out of 1525 companies for Return-on-Tangible-Equity. This puts The Federal Bank in the upper half of its industry. The industry median Return-on-Tangible-Equity is 11.20. The Federal Bank's value of 13.40% is 19.6% above this benchmark. Historically, The Federal Bank's own Return-on-Tangible-Equity has ranged from 8.81 to 15.31 over the past decade. While the company's 10-year median is 11.10 vs. the industry median of 11.20, The Federal Bank has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Banks company?
The median Return-on-Tangible-Equity among Banks companies is 11.20, based on 1,525 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The Federal Bank's current Return-on-Tangible-Equity of 13.40% is 19.6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on The Federal Bank and its competitors. For the Banks industry, the median Return-on-Tangible-Equity is 11.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Federal Bank's current Return-on-Tangible-Equity is 13.40%, which is 21% above median its own 10-year median of 11.10. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The Federal Bank stock overvalued right now?
The Federal Bank (FDBAY) has a current Return-on-Tangible-Equity of 13.40%. The current Return-on-Tangible-Equity is 13.40%, which is 21% above median its 10-year median of 11.10 and 19.6% above the Banks industry median of 11.20. The Federal Bank's overall GF Score™ is 73/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For The Federal Bank (FDBAY), the current Return-on-Tangible-Equity is 13.40% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
The Federal Bank Ltd is an India-based commercial banking company. The company operates through a network of branches and ATMs across India. The company's business segments consist of the Treasury, Corporate/Wholesale Banking, Retail Banking, and Other Banking Operations. The company generates key revenue from the Retail Banking segment, which is engaged in lending of funds, acceptance of deposits, and other banking services to any legal person, including small business customers, on the basis of the status of the borrower, nature of the product, granularity of the exposure, and quantum thereof.
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